Tennessee Industry News

Baker Realty Finished Strong in 2010

Knoxville, TN - Baker Realty Company, a leader in the Industrial Real Estate market in the East Tennessee Valley Region, finished 2010 very strong in industrial property sales and leasing.

Baker Realty was involved in the disposition of approximately 750,000 square feet of manufacturing and warehouse space in the final 4 months of the year, with a total of approximately 1,000,000 square feet for all of 2010. “We tend to stay ahead of the curve as it relates to industrial real estate activity in this region”, said Bob Thornton, of Baker Realty. For over 30 years Baker Realty has worked very hard to build a reputation of being most knowledgeable in the market to better serve their clientele. Because of their knowledge and experience, they are constantly called upon to represent companies looking to expand, relocate, or dispose of industrial property in the area. Some of the recent sales in the Knoxville area includes: R&L Building, 113,000 Sq. Ft.; Kellogg’s Building, 37,500 Sq. Ft.; Redbow Building, 56,500 Sq. Ft.; TTC Building, 98,000 Sq. Ft., all in Knoxville, and the Omega Cabinets Building, 200,000 Sq. Ft. in Clinton.

Overall, Knoxville experienced a very sluggish industrial real estate market in 2010, as did the nation as a whole. Sales and values continue to be well below 2006-2007 levels, vacancy rates are double digits, with construction being relegated solely to build-to-suit facilities and expansions, and speculative construction virtually nonexistent. Based on our 4th Quarter 2010 increases in activity and the expansion in the national manufacturing sector, we are cautiously optimistic about 2011, Thornton said. We believe prices will stabilize, vacancies and unemployment will decrease, and automotive manufacturing and related industries, such as Volkswagen’s new assembly plant in Chattanooga, will have a positive impact on the region. It’s our opinion that Knoxville and the East Tennessee Valley‘s location, diversified industrial base, and favorable business environment, will remain a popular relocation destination for companies looking to relocate or expand to the Southeastern U.S.

Contact:

Baker Realty Company
Bob Thornton, SIOR
Director, Industrial Real Estate
bobthornton@bakerrealtycompany.com
(865) 450-2999 / (865)548-2990
www.bakerrealtycompany.com